Unique Liquidator Addresses

Overview

This indicator shows the number of unique addresses that have interacted with liquidation contracts in a given day or cumulatively over time. It is a healthy sign for a protocol to have a high number of addresses reliably liquidating positions, this assures depositors that several different liquidators are monitoring positions in the protocol.

How can I use it?

There have not yet been any liquidations on Stakewise. The chart above is from the Moonwell Risk Radar to help provide context to what the chart would look like when liquidations occur.

Counting the number of unique liquidators in a decentralized finance (DeFi) protocol can provide useful information for understanding the level of decentralization and security of the protocol.

The more unique liquidators a DeFi protocol has, the more decentralized it is, as the risk of a single party controlling the liquidation process is reduced. This helps ensure that the protocol is not vulnerable to manipulation or exploitation by a single party.

A high number of unique liquidators can provide liquidity to the DeFi protocol, as there are more participants available to liquidate loans if needed. This helps ensure that the protocol remains stable and secure, even during times of high demand.

Furthermore, by tracking the number of unique liquidators, DeFi protocols can better understand the distribution of risk, and take appropriate measures to ensure the stability and security of the protocol.